Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers
AbstractState franchise laws prohibit auto manufacturers from making sales directly to consumers. This paper advocates eliminating state bans on direct manufacturer sales in order to provide automakers with an opportunity to reduce inventories and distribution costs by better matching production with consumer preferences.
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Bibliographic InfoPaper provided by Department of Justice, Antitrust Division in its series EAG Competition Advocacy Papers with number 200901CA.
Length: 15 pages
Date of creation: May 2009
Date of revision:
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- Smith, Richard L, II, 1982. "Franchise Regulation: An Economic Analysis of State Restrictions on Automobile Distribution," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 125-57, April.
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- Eckard, E Woodrow, Jr, 1985. "The Effects of State Automobile Dealer Entry Regulation on New Car Prices," Economic Inquiry, Western Economic Association International, vol. 23(2), pages 223-42, April.
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